Tax Accounting Services

Can Roth & Standard contributions be commingled? Are there accounting/tax problems with that?

Earlier this year, I began contributing to a Roth 401(K) that my employer offers, and to which I have made previous contributions (pre-tax). However, in viewing my account, the pre-tax (old 401(k) and post-tax (roth 401(k) investments appear to be commingled.

Is this a problem? Would I ever need to "back" out my Roth contributions?

I’ve searched the IRA website to no avail.

Thanks!

I have a 401k with both pre and post contributions. The statements advise you of both and I have taken out just my post tax contribution with no problems in the past.

Posted in Tax Accounting | 4 Comments »

In accounting, would Tax be considered a liability?

Taxes are technically accounts payable, right? All "payables" are liabilities. So would tax affect the basic accounting equation? (assets=liabilty + owners equity) Or is tax a completely different thing in the world of accounting? This isnt a HW question btw, i would just like to know

Taxes could be a liability or an asset depending on the company’s results. A tac liabiltiy will ocurwhen the company is profitable and has recognized tax expense. The liability represents the amount of tax owed to the government. An tax asset can exist if the company is losing money and entitled to a tax refund.

Posted in Tax Accounting | 2 Comments »

How much should an accounting business charge in annual accounting/tax prep fees?

I’m doing a little research on accounting & consulting fees. I work for a nationwide niche firm that has about 1,500 accounting clients (including tax prep) averaging about 700-800K per year in operating revenue. I believe we are undercharging for our services. Our average accounting fees are about 1% of revenue or 7-8K per year on an average client. We do perform some other services like collections, payroll, financial planning, etc. on some clients raising the total amount to 1.2-1.3%. Do those seem like appropriate percentages? I’m curious what type of benchmarks others have in their accounting and tax businesses or if anyone knows of a good source of information for this type of thing. Any input would be much appreciated as I am looking to possibly buy this business in the future.

I can only tell you about business management – taking in all of the money and paying all of the bills, in addition to doing all of the tax work. The percentage that I am going to give you also would include insurance services (taking care of the insurance needs of the clients, such as automobile insurance, insuring valuables, etc.) These firms do not sell insurance; they handle all of the insurance matters for the clients, including dealing with insurance companies, brokers and agents, etc.

I know of firms that charge 5% of earned income – not net income. Some clients are also charged a minimum fee in addition to the five percent. Minimums can vary from $1500 per month and up (sometimes less for smaller clients who may not pay any minimum at all).

I am not familiar with your particular situation, in terms of exactly the types of services that you provide. I can tell you that what I have described above is accurate.

I hope that this helps.

Posted in Tax Accounting | 1 Comment »

At what level would a CPA with 3 years of corporate accounting (non-tax) experience start out in an IRS job?

I have passed the CPA exam. I do not have tax experience other than doing my own tax returns, but I am very interested in tax and read a lot about taxes in my free time. I would like to apply for a tax job at the IRS, but I am a little concerned about a possible pay cut. At what pay level would someone in my situation typically start? Thanks.

I believe your education and CPA title qualify you for at least GS-7 government job but then again the IRS does not pay too well. They do have great benefits so that may offset the pay cut. Oh, at GS-7 you are probably looking at about $48000 a year.

Posted in Tax Accounting | 4 Comments »

Do I have to remit/charge sales tax on accounting and tax services?

I’ve decied to start my own business but I was wondering If I needed to charge/remit payments to my state for sales taxes. If so, what would my rate be? I live in Utah.

Services are not taxable. Goods are taxable.

Each state has its own website, on it will be a link to its Board of Equalization, or sales tax department. If you are buying and selling any goods along with your service, apply for a permit. They will send you your SBOE number. You use this to omit paying sales taxes for the business goods you purchase, and you use it to file monthly with the state for any sales taxes you collect on goods you sell.

The rates across the nation are changing now.

Posted in Tax Accounting | 3 Comments »

Can I open up an accounting or tax consulting office without being a public or certified accountant in NYS?

I have a bachelors degree in Political Science and minor in legal studies in business. No accounting. Can I still open up an office? I did studying on the side without schooling.

Yes, but i dont think you could do any of the work, you would have to hire a couple of CPAs on the staff. and Im not sure if you can afford that. Best of luck with everything though

Posted in Tax Accounting | 1 Comment »

What’s the best and easiest software to use for an LLC accounting and/or tax needs?

What’s the best and easiest software to use for an LLC accounting and/or tax needs?

There is not one package that will do both Accounting and Taxes.

Quickbooks should do everything that you need from the accounting side. Find a CPA/EA for the tax side. Many tax programs can input data directly from Quickbooks (assuming Quickbooks has been set up correctly).

Posted in Tax Accounting | 3 Comments »

How much federal taxes will I get back after my new car purchase?

I recently purchased a brand new car. I paid $1280 in sales tax for Michigan. How much additional will I get back in Federal taxes? I make $30,000 a year and I am married and have 2 children. Help me out if you can.

Depends on your tax bracket. If you’re in a 15% bracket, you’ll "get back" about 15% of that $1280.

Posted in Federal Taxes | 2 Comments »

Need an answer for tax accounting?

Hi, I am single with 3 children, I have been unemployed for the entire year. Do I recieve the the earned income credit for the kids? Please tell me what you know NOT what you think.
and aren’t you suppose to recieve money just for having children? Ain’t it called earned income deduction for the children up to 2 children or more?

Go online to irs.gov, and either read the pdf file or order Pub 17 and other related publications and read them while your children are asleep. It might be more advantageous if the father is able to (as per the courts and/or irs) and does claim the children as dependents to lower his tax bill. The IRS has rules and guidelines for everything you need to do taxes.

Posted in Tax Accounting | 3 Comments »

What are the main prinples of tax-effect accounting as outlined in AASB112 income taxes?

it is for company accounting.

What does AASB112 say? What can you logically deduce from that? There’s your answer – or you’ll find your answer in your textbook

Posted in Tax Accounting | 1 Comment »